CS Disco, Inc. Investors: Company Investigated by the Portnoy Law Firm

Core Viewpoint - The Portnoy Law Firm is investigating potential securities fraud claims against CS Disco, Inc. and may file a class action on behalf of investors who suffered losses [1][3]. Group 1: Investigation Details - The investigation is initiated following a class action complaint filed on September 19, 2023, covering the period from July 21, 2021, to August 11, 2022 [3]. - The investigation focuses on whether the board of directors of CS Disco breached their fiduciary duties to the company [3]. Group 2: Allegations of Misrepresentation - The complaint alleges that CS Disco highlighted strong revenue growth from its cloud-based electronic discovery platform but failed to disclose significant headwinds that could impact growth [4]. - It is claimed that the company acknowledged its rapid revenue growth was "usage driven" and potentially volatile, yet did not inform investors of any risks [4]. Group 3: Impact of Financial Results - The truth began to emerge on August 11, 2022, when CS Disco reported second-quarter 2022 financial results that fell short of expectations, revealing a significant slowdown in revenue growth [5]. - Following this news, CS Disco's stock price dropped approximately 53% on August 12, 2022, on heavy trading volume [5].